Can I Refinance After a Mortgage Modification?

Advantage Legal Group is in the business of helping people that are in financial distress either modify their existing mortgage, refinance or find a way to mediate between the lender and the homeowner. We get asked quite often if homeowners can refinance after a mortgage modification.

A mortgage modification is typically handled between a housing counselor or a qualified attorney and the homeowner and lender. The homeowner cannot go to the lender directly and ask for this mediation but must do so with a housing counselor or lawyer. This is where Advantage Legal Group comes into play. We talk to the lenders for you and make them come to the table to discuss options to either lower your mortgage payment permanently or for a short amount of time. We can modify your existing term, save you thousands and get you caught up on any past mortgage payments.

Often times we get asked if people can refinance after they’ve already had a mortgage modification. Refinancing may not have been an option initially but now that they have dealt with the modification for several months they may want to refinance. Some homeowners that have gone through the Home Affordable Modification Program may now want to refinance to a permanent lower rates. With rates continuing to creep up this is not a bad idea.

In order to qualify for refinance after modification you must have made at least 24 monthly mortgage payments consistently since the modification was completed, not since you’ve applied. If there was an additional second mortgage in place that waiting time qualifies. If you’re purchasing or refinancing at different property that did not undergo the modification you only need to wait one year.

All of these qualifications still apply whether you’re refinancing or buying a new home. You can’t modify a mortgage and then sell that home in the next two months. You must make consistent payments for at least 12 or 24 months depending on your situation before your allowed to refinance or apply for a new loan. Of course you can sell the property but you cannot apply for a new loan after that particular waiting period.

Feel free to view our video below on mortgage mediation and how Advantage Legal Group has helped hundreds of Seattle area residents keep their homes and lower their mortgage payments by refinancing or mortgage mediation.

Refinancing, buying a new home or mortgage modification definitely is something to be discussed with a lender or qualified housing counselor or attorney. For more information contact Advantage Legal Group and thank you to our guests blogger this month Tina Droessler. Tina is an expert real estate professional in Palm Desert and helps dozens of homebuyers and homeowners each year find or keep the home of their dreams.